What are the loans for university studies?

Loans for university studies which, a few years ago, were unknown in Spain and were limited to the Anglo-Saxon sphere are now considered as an alternative measure to finance higher education. The questioning of the current system of scholarships in an apparent search for equity in the distribution of student aid and the consequent reduction in funding for education have led many students to consider applying for a loan for study the diploma, master

In this article, we will discuss the different possibilities of applying for a university loan, regardless of scholarships and grants that can be perceived at both national and regional level.

TYPES OF UNIVERSITY CREDITS

Official CREDITS

Although in Spain the university is free, access to master's studies means an expense that many students can not afford. For this reason, there are loans provided by official bodies, such as the Renta Universidad loans, whereby students who wish to obtain a master's degree can apply for a loan to help pay university and maintenance fees during their term. Their conditions are more advantageous for the applicants than the private CREDITS, since the mode of return was a grace period during the first five years and from there a refund divided in fifteen years.

Bank loans

Regardless of this official loan, most banking entities offer financial products as aid to pursue university studies. However, before opting for one or the other, we must evaluate certain aspects when hiring a student loan.

In the first place, the maximum amount that each bank grants to study higher education and whose range can range from a basic amount of 5,000 euros to more than 60,000 euros must be known. As with any other loan product, it is essential to study the interest rate applied to the loan, because in addition to being fixed or variable, this will condition our ability to repay it. In addition to not forgetting other associated expenses, such as opening fees or penalties for cancellation.

With regard to the duration of the loan, the banking entities set the periods of depreciation according to the duration of the studies, even if, as for the aforementioned university income loan, it is customary to apply grace periods, This means that the monthly fees for this period are lower since only interest is paid.

Mini-CREDITS for studies

Fast loans such as those offered by the financial institutions Sucredito.es or Cashper.es and whose amounts do not exceed 500 or 600 euros can not cover university studies, but they can be taken into account to pay specific expenses related maintenance, rental, computer equipment or language courses.

The defining features of this type of quick mini CREDITS are the ease of processing and the speed with which they are managed, so that the amount can be transferred to the applicant in just ten minutes. These features make it an occasional lifeline that students can rely on to cope with a month when expenses have exceeded their expectations. Its short repayment period prevents the debt from growing longer than what is due, and once reestablished, another can be demanded, transforming it into an agile, dynamic and recurring financial product.

The best loans for students

What can I finance with student loans?

Student loans are loans specifically designed to finance certain types of courses, be they compulsory or higher. In general, they are used to pay tuition fees, although in many cases they also pay for other related expenses such as the cost of books, equipment or accommodations. There are several types of loans for students, but the most common are those listed in the following list:

Credits to finance the entire career: the money borrowed is used to cover all expenses related to higher education. This is one of the most requested student loans.

Down Payment Scholarships: Another financing product offered by many banks is a loan that awaits us the amount of a scholarship already awarded, whether to pay tuition for a career or to meet all the costs that there are associated.

Masters and Loans Postgraduates: There is a wide range of masters and postgraduate courses to choose from the university once completed, but it is clear that many are difficult to access because of its price. Thanks to student loans, the financing of a master's degree or access to the studies that interest us the most to finish our university studies, it's much easier.

Credits other courses: In addition to the degree or master's degree, there are also many specialized courses that can last for days, weeks or certain months and that can also have access and financed by these loans.

Ready for International Studies: Many of us would like to have new experiences and learn things in a different place from our routine, but we do not have enough money for that. Now, with student loans, we can go to the desired location and continue to complete our training comfortably.

It is important to consider all these expenses before asking for the money. Otherwise, we could not cope with the expenses we lack of cash and the study to cover all the costs of an academic starting a new career and therefore would not be able to take the course.

How is the financial aid intended to study?

Student loans are a useful method of financing because the economic situation in our country is always complicated. If we analyze the system of postgraduate studies in Spain with other European countries, we can conclude that the study here involves a much higher cost compared to many other African countries.

Enrollment rates have increased, but this is not the only problem, as study grants such as scholarships, loans, tax benefits and family allowances are rare in our country. The only public alternative that exists is the official grants for studies, but we do not always have the chance to get this kind of help.

The number of scholarships awarded has increased since the last changes in the regulation of the education system, although their number has decreased, the current allocation per student being lower than in previous years. For these reasons, the use of bank financing is an alternative to take into account if we do not have the chance to be beneficiaries of public aid.

Quick loans for students as a financial alternative

In addition to the loans we have just seen, which are the most common way of financing studies; There are other types of loans with different characteristics that could be another valid alternative, in case they give us a denial when applying for traditional bank loans or state aid:

- Mini credits as a one-time financial option for students

We have already discussed how student loans should be, what features and conditions they should offer, and how we can know if we are dealing with a really good loan. Obviously, online mini credits are not part of this type of loan. However, these products, on some occasions, can be very useful.

If, for example, we are studying a subject, we suspend and need some money to renew the registration or, on the other hand, in a particular subject, they ask us to buy some Academic documents urgently, we can use the mini-loans. These quick credits will allow us to have cash instantly, without explanation, even if we are students and repay the capital after one month.

We must be aware that the purpose for which these products were created is to solve specific emergencies or situations that require immediate economic response and never as a usual source of funding. In any case, if we are responsible and welcome the offers we can get the money for free, probably we will win.

It should be borne in mind that to grant us mini credit to study, you must have an adequate, fair and justifiable source of income, namely that we receive them regularly exceeding the limit set by the company and who can demonstrate a official document Only in this way can we access the money offered by private equity firms.

- Quick installment credit for various reasons

Rapid installment loans could cover the expenses of our studies and thus constitute a solution to the lack of liquidity that may occur in our training. However, it should not be the first option on our list because these are credits that are not specifically designed for this purpose. Fast loans are characterized by loans that we can get very quickly, which could be a possibility if we have to pay the tuition fees immediately and we do not have enough solvency at the moment. In this way, we could get the money quickly to pay the tuition and repay the loan in monthly installments.

As with mini credits, fast credits tend to have other purposes. However, for some moments of economic difficulty in our studies, they could be an alternative financing to take into account. In addition to the speed with which we can get money, they are characterized by loans with more flexible terms, so it may be easier for them to grant them.

5 main advantages of university credits

Student loans are products specifically designed to finance the payment of tuition fees for a career or a master's or university degree and, in some cases, other expenses arising from studies (accommodation, transportation, etc.). These loans are for the most part bank loans and are aimed at a sector of the population with very specific needs and profiles, so that the conditions they offer are somewhat different from those of other financing products:

Their needs and conditions are more flexible and favorable than those of "traditional" loans, because lenders are aware that students are trained and do not have enough to work full-time or who have the same income a person with a career behind him.

They allow depreciation for up to 15 years, although everything will depend on the entity with which we are dealing.

With student loans we will be able to receive periods of total or partial loss.

Due to the proliferation of online lenders, we can get an immediate answer on the status of our application.

The wide variety of student loans allows us to choose the one that best suits our profile.

These are the conditions that make college loans a type of financing with more market benefits. They will allow us to finance our studies in the best conditions, when we need them.

Student loan

Student  loan

Read each point to find out more about Student  loan - where to find them, how to apply, and how to pay for them.

US government loan

Perkins federal loan are low interest loan offered by universities. Stafford's federal loan are available from banks, credit unions, non-profit Student  loan providers, or directly from the federal government at universities. The federal PLUS loan allow parents to borrow up to the total cost of educating his / her child, minus any other financial assistance, whether from a private bank, a not-for-profit lender or the federal government .

Both types of federal Stafford loan

The subsidized Stafford loan are granted according to the financial needs of the Student . A key benefit of a subsidized loan is that the government pays the interest while you study at least at half-time. Unsubsidized Stafford loan are not granted based on financial need; however, you are responsible for paying all interest on the loan. To reduce the total cost of the long-term loan, it's a good idea to start paying those interest while you're still in school.

What is the interest rate for federal loan?

Interest rates on federal Student  loan are set by the United States Government. To make higher education possible for more people, the rates offered are "below the market" - tend to have lower than non-federal loan rates.

How can I apply for a federal loan?

Visit www.Student aid.ed.gov for information on federal Student  assistance and a link to the aid application called FAFSA. You can complete your FAFSA online and sign it electronically. This is a quick and easy alternative to paper documents, and lets you know your eligibility for helping Student s faster. Keep in mind that the federal government is making changes to its Student  loan programs. You should therefore check the website for the latest information.

State loan and private loan

Many state governments offer Student  loan. Check with your state to see what it offers. If you have already applied for federal loan and still need to borrow more money, you can agree a private Student  loan, which is also known as an alternative Student  loan. These are loan from financial institutions and are based on the credit of the Student .

When do I have to pay?

When you sign a loan agreement or promissory note, you agree to pay the loan according to a specified payment schedule. Some lenders may offer you more than one option for the payment program or a grace period before having to make the first payment. With a Perkins federal loan, you must start paying nine months after graduation, drop out of school or study below halftime. With a Stafford loan, you must start paying six months after graduation, drop out of school, or study at half-time.

Can the payment be postponed?

If you have a temporary financial setback, some lenders may give you the option to defer the repayment of the loan for a certain period (this is known as a carry forward) or temporarily reduce the amount of the Student  loan payment (called -indulgence in the amount to pay ). Discuss these options with the lender.

Note: To pay your Student  loan comfortably, is that the monthly payment is more than 10% of the net monthly income you expect to earn after graduation.

What is the number of student loan consolidation?

What is the number of student loan consolidation?

The student loan consolidation is merging several student loans, and is done to save money on interest and for the convenience of a payment instead of several. There are lots of things you should know about student loan consolidation, and this site provides the information you need to make a decision.

Loan consolidation - Information

It is very likely that if you went to college, is likely to be some form of student loan debt. Every year, loan, it is a new and unique loan that helps pay for your tuition and living. When all is said and done, but one of the best ways to save money is through student loan consolidation. In consolidating students get a loan paid in full loans.

Consolidating student loans is a mystery to many college and students. The truth is, however, consolidation loans can save a lot of money. Additionally, you can pay your faster for their college years are not chasing you in your retirement year’s debt. What a relief consolidation loan allows the students.

There are many ways to get a consolidation loan. You can get federal loans, a bank or a private lender, but whatever you choose to do so; consolidation will have a great effect on leaving college during their debts. The idea is that only one payment per month is required, so you can pay your debt off faster and lower than you normally do monthly payments.

Consolidation loans for current students

It is a fact that almost half of all college students graduate with a degree of student loan debt. The average debt of $ 20,000 focusing on. This means that an entire population of young people with serious debt and no training on how to deal with it. Most do not know, but the truth is that many of these students are met to consolidate loans and school.

Despite what many think is the student loan consolidation not to wait until after college. In fact there are many benefits that have been consolidated, while still in school. Consolidating student loans while in school can reduce debt even before you begin to pay debts. However, it is only the beginning.

Another advantage of debt consolidation student loans while still in school is that you can avoid any increase in interest. In July 2006, the rate on federal student loans rose sharply. There is nothing to prevent this kind of excursions that take place again. The sooner the debt is consolidated and locked, the less likely the victim of a rapid increase.

As with anything else, make sure that debt consolidation student loans before graduation work for your specific situation. In most cases, however, a good economic and sub-base. Lightening your debt before it was even pay is a big advantage. Actually, it may be the difference in the payment of their loans in 10 years or 30 years.

Benefit credit

Consolidating your student loan debt can do more than just reduce its long-term debt. The fact is that consolidation can help increase your credit score during the loan. This, in turn, will help you to buy a better car, get the home you want, or end up with a lower rate credit card. But how can a consolidation loan student debt can help you increase your credit? Consider some of the measures used by credit rating agencies reports.

First, a greater opening of accounts with the lowest score will generally be. Throughout his student life, which will be held until 8 loans to pay for their education. Each of them is shown as a separate account with the treasury payments of interest and principal. By consolidating accounts to a single account is closed. So instead of 8 open accounts that have one. This right will not help you qualify.

Secondly, you will have lower payments by consolidating their student loans. When the number of agencies reporting your credit score, they see your minimum monthly payment. Instead of having multiple payments per month for your student loans, you have a payment that is less than the sum of the payments of age. Again, consolidation helps your score.

As a final point, which improved its debt and credit rationing. When the score is calculated reporting companies check your debts are tested against credit to credit used. When you have more credit available, but less used (and to consolidate student loan debt) for the case of a higher score. Therefore, if for no other reason, consider consolidating to help your credit score.

Beware of pitfalls when loan consolidation

As we approach the end of his college career, he has received no doubt a number of brochures, mail and e-mail to consolidate your loans. Each company has no reason why you should go to them for consolidation. You should be aware that sometimes there are many catches all these promises. Knowledge capture can help you prepare to make a wise decision about your loan consolidation. Do not drop the first consolidation of operations that fall into his lap. Carefully consider the options that are supplied.

A bonus can be offered, common to all discounts. They will tell you if a series of payments on time will receive a discount. The only problem is that to maintain the discount, you have to make payments on time for the loan after it. It can be up to 20 years. A late payment on a single day during this time and "off" are gone.

Another way to get caught in a plus point is when you receive an offer of an all in one building. In this loan, the company offers to take on all debt, including credit cards, car loans and any other debt you have. It is tempting to have everything wrapped in a loan, but lose the ability to defer its predecessor or student loans. The loan will no longer be protected as a student.

As a final point, be careful not to change your email address or move. One or two misdirected, or worse letters to misleading e-mails and a lender can make the price paid. You can lose a discount or excessive expenses paid. Therefore is not aware of any company that offers strictly to work with you via e-mail.

Know what you get when it comes to consolidation loans

It is important to be aware of what they are entitled under the Higher Education Act. There are certain advantages for a federal student loan and consolidate it. Note that many lenders offer special advantages of consolidation as these that give away. There are actually offering to do. Consider some of the most common.

At the same time, if you have a letter announcing the beauty of it is that a company is ready to offer a fixed rate? If you have, not surprisingly. In fact, all offer fixed under the HEA rate. This is not an advantage, just what you expect. Do not drop the line offers more than they deserve.

Another you may notice is that there will be a credit check. Again, it is not only common, but necessary. All companies working with student loan consolidation do without a credit check. Knowing what a company is obliged to offer help to determine whether the institution actually offers a good deal or misleading, you may think you are getting a real bargain, most are required to receive the law.

As a final point, it should never have prepayment penalties. No matter what the company announces that all its loans without prepayment penalties consolidated. This is nothing special. When you are looking privileges, so just make sure you offer something special.

Myths about consolidation loans

As with any financial matter, there is a lot of misinformation floating around the student loan consolidation. These small myths keep often people from consolidation when in reality it is the best for them. When you take a look at some of the most common myths, you will be able to understand what is true and what is not there.

It is for sure that you will lose your eligibility if deferment consolidate your student loans. By consolidating, in fact, to keep the core postponements can be a big help to pay for part of the time. Evictions can be done because in school, go to college, economic problems, unemployment, to name a few.

Consolidating your student loans are not necessarily refinancing house. Some people fear that if consolidated from payments and interest and end up paying more in the long run. It's not true. On the one hand, you can pay early without penalty. Second, get a better price and can repay all loans under which a charge. The consolidation, at least, to reduce the long-term loans, when all is said and done.

As a final point, it is easy to believe that consolidation is for those who do not know what they do with their loans. It is unclear whether this idea came from, but it is so common that many believe is, and avoidance of consolidation. The truth is to consolidate your student loans, in most cases, a financial measure. You save money and reduce the loan period. It's that simple.

Loan consolidation, which makes

The process of obtaining their consolidated student loan is surprisingly easy. Once you have determined that you use for your consolidation application is only about one page in length. Even more interesting is the fact that there are several ways to fill applications. Take a look at the various options available to you so you can decide what works best for you.

One possibility is, of course, makes it personally. You can always go to the bank or financial institution that is a consolidation of your loans and take care of it. Complete, sign, and he did, and on his way. The lender will review your application and contact your decision. Either way, if you live nearby?

Surprisingly, you can complete your application over the phone. You really cannot fill up on the phone, but the introduction of information you can go ahead and block the types of consolidation. Once this is done, it is likely to be sent via e-mail or documents to complete, complete, sign and send back.

Thirdly, it's not surprising that it can complete its consolidation loan applications via the Internet. Many lenders have secure websites with the application must be completed. When they do, is a copy, and all care within days earned.

Find your lender

Obviously, before you can consolidate, you need to find a lender to organize its consolidation. Fortunately, there is a lot of competition out there, which means two things. This means that companies are easy to find, and they are willing to compete for your business.

The first place to look may be just around the corner, or in your mailbox. As we approach the end of school or after the change, each lender will send you a brochure, e-mail, brochures, catalogs or information about consolidation of their packages. There is nothing wrong with looking through these free brochures. Often you will find a good package that way.

Another possibility is, of course, is to talk to the financial aid office of the institution. Someone can help you find what you need. What's more, they have had experience in knowing what to look and what to avoid.

As a final point, you can see online. There are many shopping, the road and easily. Be sure to contact the sites in person or by phone, but before completing paperwork. That way you can be sure that everything is maxed and more. It's a good way to avoid online scams, and only those who seek their information about the sacrifice and move on.

As you can see, there are many opportunities to find your company to consolidate student loans. Just make sure you always compare and ask questions. In the end, the best consolidation company gives what he wants.

Problems with your payment?

No matter what you do with consolidation, it is possible that your student loan debt may be too high. With only ten years to pay, you can end up with quite a high salary, especially if you go to college or even add several years of student work. Stop payments can really put a cramp in your financial situation. There is an answer, however. If loans and payments is too unbearable, you can always expand. You can take the loan and go on for years in many cases.

Although the standard is 10, your consolidation loan can, in most cases, it takes much longer. You can stretch to 15, 20 or even 30 years. You will earn more interest on the way, but with a lower monthly payment, you will have more capital available to live your life. You have to decide if you are willing to pay more in interest to make your finances more manageable.

Consider that in this way. Would you rather have a house and a new car, while paying a little more interest, or if you do not pay your loan off in 10 years, but the years go by, in a small apartment with a bad car and disposable income? Most prefer the former over the latter. Therefore, there is no shame in the loan, if that's what we do.

Student loans interest may be deductible

Student loans interest may be deductible

The price of a college education continues to rise, but it is possible to obtain a tax deduction that reduces the cost. Taxpayers of certain characteristics can deduct the interest payments on a loan the Student on their tax returns. While parents and students should consult with your tax advisor to verify that they can access this deduction, the following list of some of the rules of the Internal Revenue Service (IRS) on this issue can be a good starting point:

The possible deduction amount

The deductible maximum interest for a loan the Student is $2,500. This amount is per statement, not per person, and varies depending on certain factors such as the way in which it is declared and income.

Way to declare

Taxpayers who declare their taxes as "married by declaring in a separate way" may not be auorizados to not deduct interests on loans to students. They can deduct those who declared as "married declaring jointly," "single or unmarried," "head of family", or "widower or widow".

Income limits

Also some restrictions apply to the entry. Taxpayers who have a modified adjusted income (MAGI) less than certain amount can deduct $2,500 of interest on the loan tothe student. The deduction is phased out as it increases the MAGI, and there is no deduction available for MAGI beyond certain limit. The MAGI limits vary depending on the form of declare. For a definition of the MAGI, contact the IRS or your tax advisor. They can also provide information about the MAGI limits used to determine thedeductibility of the interest on the loans to the student. For 2009, the amount of taxfor interest on education loans is removed for an adjusted gross income (MAGI) of between $120,000 and $150,000 for married couples who pay joint return. For whichrender individual returns, the deduction is removed with income of $60,000 to $75,000.

Loans to parents against loans to children

A child who no longer depends on the family and takes a loan the Student to his name can be authorised to deduct the interest. If the loan is taken in the name of oneof the parents for the child's education, the interest on that loan may be deductibleprovided the child depended on parents when the loan was received. If both the father and the son are both loans to finance education, to determine who receives thededuction will depend on if the child was dependent on parents. In that case, if theStudent was not dependent on parents when the loan was taken, can that parents may not deduct the interests, but the Student Yes; If the Student was dependent, the parents can deduct interest.

You may have other restrictions on the deductibility of interest on a loan apply to the Student at the federal level, in addition to state tax laws vary. So again make surewith your tax advisor before deducting interest on a loan in his statement. For moreinformation, see publication 970 of the IRS, Tax Benefits for Education (tax benefits for education) and the Tax Topic 456 Student Loan Interest Deduction (deduction of interests on loan to the student).

Have you considered consolidation?

Keeping track of all your student  loans can be confusing - is consolidation of the answer?

Whatever type of loan you take out, it comes with its own interest rate. It may seem a mystery when it comes to keeping track of your  loans and payments.

When it comes to  loans, consolidation is a great option. By consolidating your  loans, you may be easier to handle, because in essence, your multiple  loans are one and the payment will be simplified into one monthly payment.

Before you decide to consolidate your  loans, but financial experts point out that there are some factors that you should be sure to think about.

Consider the following factors, as listed by US News & World Report before deciding whether loan consolidation is a good idea for you:

What kind of  loans

Believe it or not, you have something more than your balance to consider what types of  loans you have taken out.

For example, if you took the same or different types can make a difference in the consolidation.

If you're like most borrowers who have taken a mix of both  loans and unsubsidized Stafford. You will need to consult with your lender to find the tariffs for each loan rates and whether the  loans have fixed. If you are unsure of your loan, which is what sends your monthly statements.

Assuming you decide to consolidate your  loans, remember that a consolidated payment is an average of all your  loans are consolidated.

What you need to consider then is whether the average consolidation will make more interest paid on time. The combination of lower interest rates and higher can get you to do it.

Your loan benefits

Again, note their types of  loans and benefits each offers.

For example, some types of  loans offer more loan forgiveness options or other flexible payment. Combine them with other types of  loans can reduce or eliminate these benefits and opportunities.

Conversely, consolidation help you access these settings forgiveness.

The savings are not guaranteed                                                           

While consolidation can help confusion by changing several  loans into one, which should not be the only reason you decide to consolidate. If you are able to hold your payments on track, consolidation is probably unnecessary.

If you have trouble just keeping track of your payments separate  loans do not consider automatic debit payments as an alternative to consolidation.

But if you are struggling to make payments, you will likely see a reduction in the consolidation. It is likely to end up paying more in the long run, but worth it if you have been delinquent in their payments.

Consider both short term and long term goals

Decisions on loan consolidation should take into account the long term as well as the present. This is because their payment situation is likely to improve as time goes on, especially if your wage as your career progresses.

If this is not the case, and your wages are expected to main stagnant instead grow significantly in the long term, it is important to consider that too.

If you are currently struggling to repay their  loans and may well default on their payments or grow close to making it, loan consolidation is a great option for you.

Choosing a student loan: Public vs. Private

What drives the students to choose private loans federally - and it is right for you?

Loans - It's a very loaded word, especially when it comes to finance higher education. Although all have the same purpose - to help pay for school - may come from a variety of sources.

All students are invited to submit the FAFSA, which determines eligibility for financial support. With this form, eligible students have the option to borrow from the federal government through a variety of loan programs. And all students, regardless of need, qualify for unsubsidized Stafford loans.

But some students choose nonfederal aid; Instead of choosing private loans. Why is this?

Lower monthly payments. While federal student loans have a lower interest rate, private student loans actually have lower monthly payments. This is due to the conditions of these loans are usually 20 to 25 years compared to standard term of 10 years with federal education loans. While this seems ideal for a recent college graduate, the reality is that the borrowers have to pay more than four times the interest over the life of the loan.

Marketing. While banks are in the business of helping people achieve their dreams, they are also in the process of making money. That's why they offer a lot of initial benefits for the students to try to attract to choose your lender as student institution. For example, some institutions advertise introductory rates that are competitive with rates on federal student loans, but these are not guaranteed to last the life of the loan as is the case for federal student loan funds.

Bureaucracy and privacy. Federal student loans require families to submit the FAFSA, disclosure thus all their financial matters for the federal government. Some people may be uncomfortable with this. Private loans are much less invasive and only institution sees your information. In addition, applications are much simpler than filling out the FAFSA.

Eligibility and confidentiality. Many families of middle and upper class feel that they cannot benefit from the aid; Therefore never submit the FAFSA. But unsubsidized Stafford and PLUS loans are not depending on needs; Families only have to fill out the FAFSA to qualify. Through these opportunities, they can take advantage of lower interest rates. At the same time, families simply feel more comfortable borrowing through bank has been in years.

Satisfactory academic performance. Finally, some students do not have a choice if your GPA is below 2.0. When a student falls below this line, he or she is no longer eligible for federal financial aid. Instead, they merely rely on private student loans to finance their higher education.

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